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E-MOBILITY
Electric four-wheelers: Steering into the next phase of sustainable transportation With the striving thrust from the government for boosting indigenous manufacturing through the Atmanirbhar Bharat initiative, the original equipment manufacturers (OEMs) and allied sectors are gearing up for the new opportunities in India’s evolving e-mobility ecosystem.
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he global automotive industry is on the edge of disruption. Four technology-driven trends — electrification, shared mobility, connectivity, and autonomous driving—are leading the automotive industry to this disruption. Out of these, Electrification is of significance and might considerably impact auto OEMs and auto component manufacturers. India has big plans for the emerging EV sector and its technologies. The country has great expectations of accomplishing a high level of penetration in e-mobility by 2030. EVs in India have opened ample business opportunities for automobile companies within the country and across the globe.
The e-4W market in India
India represents the fourth-largest automobile market in the world. The World Economic Forum and Ola Electric emphasized that the Indian automobile industry is one of the fastest-growing markets globally, but it still just makes up 0.5 percent of the global EV market. The EV market is expected to be a `50,000-crore opportunity in India by 2025 and it is expected to drive higher electrification of the vehicles in the medium term, in the wake of COVID-19.
The EV market in India has gained significant momentum after the implementation of FAME India scheme. In FY 2019-20, industry sold ~3000 units. The market has gained traction from the customers with the launch of new high-performance vehicles in the market.
Figure1: Market Share of e-4W Players, 2019-20 Source: CES Analysis, SMEV, Primary & Secondary Research
As per the Society of Manufacturers of Electric Vehicles (SMEV), the sales of e-4W have slumped to 3,400 from 3,600 units sold in FY19. The fall in the sales of electric cars is being credited to the lack of bulk purchases in FY20. However, the electric cars have also started to see traction in the shared mobility segment, though the range of EVs and lack of charging spots continues to be a challenge.
Image for representation purpose only | November-December 2020
The acceptability of electric cars in the premium segment in the second half of the year was a positive signal of a significant jump of a much higher volume of e-4Ws in FY 20-21, according to SMEV. Policy framework: Giving impetus to growth of e-4W market: The uptake of EVs in India is projected to yield diverse benefits for the country, such as lowering pollution levels, enhancing energy security with improved balance-oftrade levels, and meeting global climate-change commitments. The improved use of EVs could reduce CO 2 emissions by 37 percent. To enable the higher and faster rate of adoption of EVs in the country, a clear policy directive is important. Indeed, some key policy decisions to this effect have been taken in recent years, e.g., the National Electric Mobility Mission Plan (NEMPP) 2020, launched in 2013 by the Department of Heavy Industry (DHI), as a roadmap for the faster manufacture and adoption of EVs in the country. Under this plan, the government of India targets to reach sales of six to seven million hybrid vehicles and EVs by 2020. As part of the NEMMP, the faster adoption and manufacturing of (Hybrid) EVs in India (FAME India) Scheme was informed in April 2015, to encourage the manufacture of electric and hybrid vehicle technology. Initially launched for a period of two years, FAME-I, the first phase of the scheme, was extended to a period of four years, until March 31, 2019. A total of `5.29 billion was allocated and utilised under the scheme, a major portion of which was established for demand incentive (about `3.43 billion). To boost wider adoption, buyers
